MSRB Rules Flashcards
(17 cards)
Does the MSRB regulate issuers, market participants, or both?
Only market participants
Does the MSRB create regulations, enforce regulations, or both?
Only create
What exam is for Municipal Securities Principal?
Series 53
What exam is for Municipal Securities Representative?
Series 52
What does a Series 7 exam allow you to do with municipal securities?
Only sell
Can you make recommendations if a customer does not supply financial information?
No, not under MSRB rules
Can a municipality’s financial adviser every be the underwriter of its issues?
No
Do competitive bid issues require spread disclosure?
No; only negotiated ones do
What happens when there is a customer complaint?
Customer given the Investor Brochure detailing process, written record kept on file for 6 years
Pricing factors for Principal Trades
Yield should be comparable
Maturity and call features
Nature of the dealer’s business
Existence of material information about a security
Pricing factors for Agency Trades
Price of transaction
Amount of any other compensation recieved
Syndicate Priority Order
Pre-sale
Group net
Designated
Member takedown
Are abstracts or summaries considered advertising by the MSRB?
Yes
Can an advertisement only include the current yield?
No, just include wither yield to maturity for discount bonds or yield to call for premium bonds
Who approves advertisements?
Municipal Securities Professional (Series 53) or General Securities Principal (Series 24)
How long must MSRB advertisements be kept on file?
4 years
For municipal underwritings, does the names and participation amounts of the underwriters have to be disclosed?
No
